Boiler & Machinery Claims (Mechanical Breakdown)

Claim Type

Boiler & Machinery Damage (Mechanical Breakdown)

Boiler
and machinery insurance refer to the insurance of machines. Boiler insurance
is not applicable only to boilers, but any machine that generates electrical
power, for example, generators, motors etc. Boiler and machinery insurance
include the damage to not just the machine, but also to the surrounding area
through explosions, fire etc.

Why
Opt for Boiler and Machinery Insurance?

If you
have ever tried to settle a simple insurance claim related to breakdown or
damage to machine or equipment, you will know how difficult it is to get the
company to pay for additional damages like destruction of property, loss of
business etc. Boiler and Machinery Insurance covers not just the damage to
the machine, but also other damages caused by the malfunctioning machine.
These damages may include business loss and property damage. In fact, some
types of Boiler and Machinery Insurance also cover damages to neighboring
properties, and pay for setting up of temporary arrangements for running the
business.

Who
Needs Boiler and Machinery Insurance?

Anyone
who runs any kind of business that uses electrical or mechanical devices of
some sort should buy a Boiler and Machinery Insurance policy. Many people
have the misconception that Boiler and Machinery Insurance is only for large
factories and manufacturing units. As a small business owner, you probably
do not use heavy machines, but even the smallest of businesses use equipment
like air conditioners, refrigerators, ovens, coffee machines etc.
Malfunction in any of these equipments could cause an explosion or fire,
damage to neighboring as well as your own property and business loss. Boiler
and Machinery Insurance will cover all these damages.

What
Does Boiler and Machinery Insurance Cover?

Boiler
and machinery insurance are of different types. Some kinds of boiler and
machinery insurance cover a specific boiler that is recognized by year of
manufacturing or number. Other Boiler and Machinery Insurance cover
electrical motors. The more extensive Boiler and Machinery Insurance cover
all kinds of machinery and equipment, as well as damage caused by equipment
malfunction.

How to
Choose Boiler and Machinery Insurance:

Most
small business owners opt for boiler and machinery insurance to cover the
items that are not covered by other kinds of insurance policies, like
property or vehicle insurance. Choose a policy that not just pays you for
the damaged machine, but also helps you recover from business losses caused
by the accident. This means that you should look for a boiler and machinery
insurance policies that will help you set up a temporary business unit after
an accident, pay for damages to the property and compensate for business
losses.

This kind of insurance (sometimes called “equipment breakdown insurance”
or “machinery equipment insurance”) pays for accidental losses to equipment
and machinery. In spite of its name, boiler insurance can actually cover any
machine or device that creates or transmits electrical or mechanical power,
with certain exceptions.

Most business property insurance policies exclude coverage for losses
caused by steam boiler explosions, mechanical breakdown, or artificially
generated electrical current. Boiler insurance protects against those types
of losses and is ideally suited for industry and manufacturing.

Examples of Boiler Insurance Covered Items:

specific objects – “2004 Boiler # 45322”

blanket objects – “blanket all electrical motors”

comprehensive – “all objects unless specifically excluded”

In the U.S., most insurance companies providing boiler insurance will
usually perform required boiler inspections for free.

Extensions of CoverageStandard boiler / machinery policies have three extensions of
coverage.
1) Expediting Expense coverage, which pays for reasonable extra cost
incurred to expedite business after a loss
2) Automatic Coverage covers accidents to items at newly acquired locations
for up to 90 days after acquisition
3) Defense Cost for defending the company against claims alleged liability
for damaging the property of others. Defense Cost and Supplementary Payments
are payable in addition to the policy limit. Expediting Expenses are
included in and not in addition to policy limits.

Broad Coverage Form
Coverage is provided for any boiler, any pressure vessel, any refrigeration
or air conditioning equipment and any mechanical or electrical equipment.
Only certain types of companies can qualify for the small business policy
and property values cannot exceed $5 million.

Deductibles
The standard deductible is $250. Coverage can be written with more than one
deductible.

Call PublicAdjusters.com for a consultation to explore all your
options in dealing with your
Boiler & Machinery Claim. 1-800-303-2591